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Quit Claim Deed advice needed!!!

Posted on: 05th Feb, 2009 06:39 pm
long story short - my wife and i bought a condo in denver in 2006. we were told everything was new. our inspection showed no problems (found out later our inspector was not legit). come to find out that there are problems with basically everything that is common property. the boilers are about 20 years past their service life, the exterior staircases are rotten and people are falling thru them, there's mold, oh - and there's no money in the hoa and they're going to increase monthly dues and do a special assessment. they need $1.6m to repair everything and banks are laughing at their loan requests.

here's my problem - my wife and i make more than enough to afford the place, but it's likely the community will be dissolved and condemned. in this case a foreclosure/bankruptcy is very likely. we've pursued lawyers of all sorts (mortgage, real estate, criminal/civil against the developer) and they all refuse to take the case, as there's nothing to win.

my main concern is to protect my wife's credit. i can live with trashed credit but if both our scores are in the tank - that's bad! my name only is on the mortgage, but both our names are on the deed of trust and the note.

is there anything i can do to get her off the hook in case we have to foreclose??? will a quit claim deed effectively remove her from the deed of trust and the note, and will this keep her safe from a foreclosure/bankruptcy?

sorry for the long post, but any help will be greatly appreciated!!!!
Hi Dudebro

A quitclaim can well be exactly what you need in this case. It is more than effective in taking your wife's name from the title of the property. Thus if a foreclosure is inevitable, your wife can be spared a dip in her credit score which is your main concern as mentioned by you in the post. Thus if the property goes for a foreclosure, it will affect your score as you are the lone owner of the property and since your name is already on the mortgage.

However, consultation with an attorney is always appreciated before you take such a decision.
Posted on: 05th Feb, 2009 09:37 pm
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